Brookdale Senior Living (NYSE:BKD) Shares Gap Down - Should You Sell?

Key Points

• Brookdale Senior Living shares fell sharply, opening at $10.35 versus a prior close of $10.89 and later trading near $9.95 on volume of roughly 1.9 million shares.
• Analyst sentiment is generally positive, with a consensus “Buy” rating and average price target of $17.40, despite Barclays lowering its target to $17 and Weiss Ratings maintaining a “sell” rating.
• The company exceeded quarterly EPS expectations, reporting $0.10 versus the forecasted loss of $0.06, but revenue missed estimates and Brookdale continues to show negative net margins and return on equity.

Brookdale Senior Living Inc. (NYSE:BKD - Get Free Report)'s stock price gapped down prior to trading on Friday. The stock had previously closed at $10.89, but opened at $10.35. Brookdale Senior Living shares last traded at $9.9530, with a volume of 1,932,153 shares traded.

Analyst Upgrades and Downgrades

BKD has been the topic of several recent analyst reports. Zacks Research upgraded shares of Brookdale Senior Living from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Barclays dropped their price target on shares of Brookdale Senior Living from $18.00 to $17.00 and set an "overweight" rating for the company in a research report on Tuesday, August 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Brookdale Senior Living in a research note on Monday, August 24th. Finally, Compass Point assumed coverage on Brookdale Senior Living in a research report on Monday, June 15th. They issued a "buy" rating and a $22.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $17.40.

Brookdale Senior Living Price Performance

The company has a market cap of $2.41 billion, a price-to-earnings ratio of -17.39, a P/E/G ratio of 5.19 and a beta of 0.53. The company's 50-day simple moving average is $12.06 and its 200-day simple moving average is $13.28.

Brookdale Senior Living (NYSE:BKD - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of ($0.06) by $0.16. Brookdale Senior Living had a negative return on equity of 15,050.32% and a negative net margin of 4.53%.The business had revenue of $718.58 million for the quarter, compared to analysts' expectations of $735.63 million. Equities analysts predict that Brookdale Senior Living Inc. will post 0.06 EPS for the current fiscal year.

Institutional Investors Weigh In On Brookdale Senior Living

A number of institutional investors have recently made changes to their positions in BKD. WCM Investment Management LLC bought a new stake in Brookdale Senior Living during the first quarter valued at $171,681,000. Wellington Management Group LLP boosted its holdings in shares of Brookdale Senior Living by 9.1% in the 2nd quarter. Wellington Management Group LLP now owns 9,633,343 shares of the company's stock valued at $155,000,000 after buying an additional 802,736 shares during the period. Maple Rock Capital Partners Inc. grew its position in shares of Brookdale Senior Living by 9.0% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 8,888,148 shares of the company's stock valued at $143,010,000 after buying an additional 731,000 shares during the last quarter. Renaissance Technologies LLC grew its position in shares of Brookdale Senior Living by 20.4% during the 1st quarter. Renaissance Technologies LLC now owns 7,663,564 shares of the company's stock valued at $104,838,000 after buying an additional 1,300,100 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Brookdale Senior Living by 3.5% during the first quarter. Dimensional Fund Advisors LP now owns 5,194,941 shares of the company's stock worth $71,061,000 after acquiring an additional 173,454 shares during the period.

Brookdale Senior Living Company Profile

Brookdale Senior Living Inc NYSE: BKD is a U.S.-based senior living company that owns, manages and operates communities designed for older adults. Its offerings include independent living, assisted living, memory care and continuing care services, allowing residents to receive different levels of support as their needs change.

The company provides housing and daily living services alongside dining, wellness, social and recreational programs, transportation and care coordination. Through its ancillary services, Brookdale also offers certain home health, hospice and therapy services to residents and other older adults.

Brookdale serves communities across the United States.

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